What is the difference between NBFCs and Banks? - ProProfs Discuss
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What is the difference between NBFCs and Banks?

Asked by C. Gray, Last updated: Jun 21, 2020

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K. Myers

K. Myers, Blogger, Chicago

Answered May 12, 2020

Both NBFC and Banks are known to be companies that deal with finances. Banks will have the ability to provide self-drawn cheques. They can also demand drafts. NBFC stands for Non-Banking Financial Company. While they will not be able to provide some of the services that banks can, they can still lend money to those who are in need.

Another difference between the two is the ability to take deposits. The bank will be able to take deposits and save the money of people. NBFCs will not be able to do that. Take note that the interest rates may also differ so this is something that you have to think about.

 

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